Clearwater Paper Reports Third Quarter 2025 Results

About this update from Clearwater Paper Corporation

SPOKANE, Wash., October 28, 2025 --( BUSINESS WIRE )-- Clearwater Paper Corporation (NYSE:CLW) , a premier independent supplier of bleached paperboard to North American converters, today reported financial results for the third quarter ended September 30, 2025. THIRD QUARTER HIGHLIGHTS "We delivered a strong third quarter that was on the upper end of our expected adjusted EBITDA range, driven by higher shipments, improved production, and continued execution of our fixed cost reduction efforts," said Arsen Kitch, president and chief executive officer. "Our Lewiston team also did an outstanding job completing the major maintenance outage as planned." OVERALL RESULTS For the third quarter of 2025, Clearwater Paper reported net sales of $399 million compared to $393 million for the third quarter of 2024. Clearwater Paper reported net loss from continuing operations in the third quarter of 2025 of $54 million, or $3.34 per diluted share compared to net loss from continuing operations of $11 million, or $0.64 per diluted share for the third quarter of 2024. The increase in net loss was primarily driven by a $48 million, or $45 million tax affected, non-cash goodwill impairment charge. The Company accumulated $35.1 million of goodwill through the acquisition of Manchester Industries in 2016 and $12.9 million of goodwill through the acquisition of the Augusta facility in 2024. The impairment was driven by the decline in Clearwater Paper market capitalization as compared to the increase in book value driven by the gain on the divestiture of the Tissue business late in 2024. Adjusted EBITDA from continuing operations was $18 million for the third quarter of 2025 compared to $21 million in the third quarter of 2024. The decrease in Adjusted EBITDA from continuing operations was due to the timing of our major maintenance outage at our Lewiston facility and reduced sales prices, offset by higher sales volumes, lower input costs and our planned cost reduction activities. The Lewiston outage occurred in the second quarter of 2024 as compared to the third quarter of this year. For the first nine months of 2025, Clearwater Paper reported net sales of $1.2 billion compared to $997 million for the first nine months of 2024. Clearwater Paper reported net loss from continuing operations in the first nine months of 2025 of $56 million, or $3.47 per diluted share, due primarily to the non-cash goodwill impairment charge, compared to net loss from continuing operations of $54 million, or $3.27 per diluted share for the first nine months of 2024. Adjusted EBITDA from continuing operations was $87 million compared to $27 million in the first nine months of 2024. The increase in Adjusted EBITDA from continuing operations was primarily driven by higher sales volume and benefits from our cost reduction plan, offset by lower sales prices. Sales volumes and prices: COMPANY OUTLOOK "SBS continues to be in an oversupplied position, which we believe is also impacting the broader consumer paperboard market. While we remain optimistic about a recovery, we are focused on what is within our control, namely reducing our fixed costs and maintaining our market share. We believe that our high quality assets are well positioned to generate significant cash flows and strong returns on capital in the long run," concluded Kitch. WEBCAST INFORMATION Clearwater Paper Corporation will discuss these results during an earnings conference call that begins at 2:00 p.m. Pacific Time on October 28, 2025. A live webcast and accompanying supplemental information will be available on the company's website. A replay of the conference call will be available on the website beginning at 5:00 p.m. Pacific Time the same day. ABOUT CLEARWATER PAPER CORPORATION Clearwater Paper is a premier independent supplier of paperboard packaging products to North American converters. Headquartered in Spokane, Wash., our team produces high-quality paperboard that provides sustainable packaging solutions for consumer goods and food service applications. For additional information, please visit our website at www.clearwaterpaper.com . USE OF NON-GAAP MEASURES In this press release, the company presents certain non-GAAP financial information for the third quarter and first nine months of 2025 and 2024, including adjusted net income (loss) from continuing operations and Adjusted EBITDA from continuing operations. Because these amounts are not in accordance with GAAP, reconciliations to net income (loss) from continuing operations and Adjusted EBITDA from continuing operations as determined in accordance with GAAP are included in the tables at the end of this press release. The company presents these non-GAAP metrics because management believes they assist investors and analysts in comparing the company's performance across reporting periods on a consistent basis by excluding items that the company does not believe are indicative of its core operating performance. In addition, the company uses Adjusted EBITDA from continuing operations: (i) as a factor in evaluating management’s performance when determining incentive compensation, (ii) to evaluate the effectiveness of the company's business strategies, and (iii) because the company's credit agreement and the indentures governing the company's outstanding notes use metrics similar to Adjusted EBITDA from continuing operations to measure the company's compliance with certain covenants. FORWARD-LOOKING STATEMENTS This press release contains certain "forward-looking" statements within the meaning of Section 27A of Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995 as amended, including statements regarding: our outlook for the next quarter, our ability to continue realizing additional savings from our fixed cost reduction efforts and retain our market share, our focus on operational execution amid challenging SBS industry conditions and our emphasis on maintaining strategic actions and customer relationships to navigate the industry down cycle. These forward-looking statements are based on management’s current expectations, estimates, assumptions and projections that are subject to change. The company’s actual results of operations may differ materially from those expressed or implied by the forward-looking statements contained in this press release. Factors that could cause or contribute to such material differences in actual results include, but are not limited to: there may be unexpected costs, charges or expenses resulting from the tissue business sale transaction; achievement of anticipated financial results and other benefits of the tissue business sale transaction; potential risks associated with operating without the tissue business, including less diversification in products offered; changes in the company’s capital structure; risks relating to the achievement of anticipated financial results and other benefits of the Augusta, Georgia paperboard manufacturing facility acquisition, including from our integration efforts and the recovery of any losses related to the representation-and-warranty insurance claim; competitive pricing pressures for the company’s products, including as a result of capacity additions, demand reduction and the impact of foreign currency fluctuations on the pricing of products globally; changes in the U.S. and international economies and in general economic conditions in the regions and industries in which we operate; increased regulation of retaliatory trade actions in response to announced or proposed U.S. tariffs, including potential impact on costs, structure, supply chains, or consumer demand; cyclical industry conditions; manufacturing or operating disruptions, including equipment malfunctions and damage to the company’s manufacturing facilities; the loss of, changes in prices in regard to, or reduction in, orders from a significant customer; changes in the cost and availability of wood fiber and wood pulp; changes in energy, chemicals, packaging and transportation costs and disruptions in transportation services impacting the company’s ability to receive inputs or ship products to customers; reliance on a limited number of third-party suppliers, vendors and service providers required for the production of the company’s products and the company’s operations; changes in customer product preferences and competitors’ product offerings; changes in labor contracts, including any related wage adjustments; labor disruptions; cyber-security risks; larger competitors having operational, financial and other advantages; consolidation and vertical integration of converting operations in the paperboard industry; the company’s ability to execute on the company’s growth and expansion strategies; the company’s ability to successfully execute capital projects and other activities to operate the company’s assets, including effective maintenance, implement the company’s operational efficiencies and realize higher throughput or lower costs; IT system disruptions and IT system implementation failures; changes in expenses, required contributions and potential withdrawal costs associated with the company’s pension plans; environmental liabilities or expenditures and climate change; risks and costs associated with new or ongoing environmental litigation, including PFAS related claims or regulatory actions affecting recently acquired facilities; the company’s ability to attract, motivate, train and retain qualified and key personnel; the company’s ability to service the company’s debt obligations and restrictions on the company’s business from debt covenants and terms; changes in the company’s banking relations, or in the company’s customer supply chain financing; negative changes in the company’s credit agency ratings; changes in laws, regulations or industry standards affecting the company’s business; and other risks and uncertainties described from time to time in the company’s public filings with the Securities and Exchange Commission, including the company’s Annual Report on Form 10-K for the year ended December 31, 2024. The forward-looking statements are made as of the date of this press release and the company does not undertake to update any forward-looking statements based on new developments or changes in the company’s expectations after the date of this press release.   View source version on businesswire.com: https://www.businesswire.com/news/home/20251028376384/en/ Contacts Clearwater Paper Corporation Investors contact: Sloan Bohlen Solebury Strategic Communications 509-344-5906 [email protected] News media: Virginia Aulin, Vice President, Public Affairs 509-344-5967 [email protected]

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